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Chewy (FRA:3HH) Sloan Ratio % : -16.54% (As of Oct. 2024)


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What is Chewy Sloan Ratio %?

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

Chewy's Sloan Ratio for the quarter that ended in Oct. 2024 was -16.54%.

As of Oct. 2024, Chewy has a Sloan Ratio of -16.54%, indicating there is a warning stage of accrual build up.


Chewy Sloan Ratio % Historical Data

The historical data trend for Chewy's Sloan Ratio % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Chewy Sloan Ratio % Chart

Chewy Annual Data
Trend Dec16 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Sloan Ratio %
Get a 7-Day Free Trial -26.72 -5.83 -3.53 12.53 -5.00

Chewy Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.97 -5.02 -19.36 -12.60 -16.54

Competitive Comparison of Chewy's Sloan Ratio %

For the Internet Retail subindustry, Chewy's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Chewy's Sloan Ratio % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Chewy's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Chewy's Sloan Ratio % falls into.



Chewy Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

Chewy's Sloan Ratio for the fiscal year that ended in Jan. 2024 is calculated as

Sloan Ratio=(Net Income (A: Jan. 2024 )-Cash Flow from Operations (A: Jan. 2024 )
-Cash Flow from Investing (A: Jan. 2024 ))/Total Assets (A: Jan. 2024 )
=(36.334-446.342
--263.799)/2925.529
=-5.00%

Chewy's Sloan Ratio for the quarter that ended in Oct. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Oct. 2024 )
=(371.015-449.951
-370.105)/2715.349
=-16.54%

Chewy's Net Income for the trailing twelve months (TTM) ended in Oct. 2024 was 29.271 (Jan. 2024 ) + 62.348 (Apr. 2024 ) + 275.786 (Jul. 2024 ) + 3.61 (Oct. 2024 ) = €371 Mil.
Chewy's Cash Flow from Operations for the trailing twelve months (TTM) ended in Oct. 2024 was 91.384 (Jan. 2024 ) + 76.365 (Apr. 2024 ) + 113.784 (Jul. 2024 ) + 168.418 (Oct. 2024 ) = €450 Mil.
Chewy's Cash Flow from Investing for the trailing twelve months (TTM) ended in Oct. 2024 was -45.813 (Jan. 2024 ) + 471.313 (Apr. 2024 ) + -26.299 (Jul. 2024 ) + -29.096 (Oct. 2024 ) = €370 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Chewy  (FRA:3HH) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Oct. 2024, Chewy has a Sloan Ratio of -16.54%, indicating there is a warning stage of accrual build up.


Chewy Sloan Ratio % Related Terms

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Chewy Business Description

Traded in Other Exchanges
Address
7700 West Sunrise Boulevard, Plantation, FL, USA, 33322
Chewy is the largest e-commerce pet care retailer in the US, generating $11.2 billion in 2023 sales across pet food, treats, hard goods, and pharmacy categories. The firm was founded in 2011, acquired by PetSmart in 2017, and tapped public markets as a stand-alone company in 2019 after spending a couple of years developing under the aegis of the pet superstore chain. The firm generates sales from pet food, treats, over-the-counter medications, medical prescription fulfillment, and hard goods, like crates, leashes, and bowls.

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